US$ has dropped past 2dys and the inverse to $WTI while not lock-step is prominent.This mining and metals fund is having a strong year so far
The Delbrook Resources Opportunities Master Fund was up 9.2% for May, bringing its year-to-date return to 33%. Q1 2021 hedge fund letters, conferences and more Dellbrook is an equity long/ short fund that focuses exclusively on the metals and mining sector. It invests mainly in public companies focused on precious, base, energy and industrial metals Read More
US$ is in part coupled to global capital returns and how safe/strong investors believe capital returns are likely to be. When the US protects Democratic institutions globally and the rule of law, the US$ falls as capital leaves ‘safe-haven’ US$ denominated assets for markets elsewhere.
Oil prices have been inversely tied to the US$ since 2003. The same inverse correlation appears to be in place today having been in/out of this correlation Nov 2016-most of 2017.
A falling US$ is a strong economic positive globally. A win-win for all.
Article by ValuePlays